Central Nebraska Housing Developers

1. Central Nebraska Housing Developers Funding Your Projects: Innovative Approaches for NIFA Conference – January 2009

2. AKA: How to be effective, unique, and passionate in finding gap funding for difficult projects

3. Workforce Development Housing ProjectO’Neill, Nebraska

4. Country Clover Estates • Workforce Development Housing Project – New Housing Subdivision • Mixed income – ≦60% AMI to No Income Limits • High quality and high energy efficiency • 19 single-family homes with unfinished basements (approx 1,300 sq ft 1st floor) • 11 CROWN Rent-To-Own (≦60% AMI) • 6 Downpayment Assistance (≦100% AMI) • 2 Market Rate (no income limits)

5. Site Plan

6. Funding Sources - Requested • $420,200 – DED/NAHTF (Infrastructure, DPA) • Received 2007 • $54,000 – City of O’Neill (Infrastructure) • Received 2007 • $1.55 million - NIFA LIHTC • Received January 2008 • $71,000 - FHLBank –AHP Funds • Received December 2008 • $68,000 – Permanent Financing • $50,000 (est) – Donated Community Services and Programs • Up to $40,000 – Employer Assisted DPA ($5,000/home) • $590,000 - DED/HOME NOT FUNDED – BIG GAP!!!

7. What a gap!! How do we fill? • Funding ideas from DED and other housing organizations? • Additional city support? • Deferred Developer fees? • Donations from Lending Institutions? • Peter Kiewitt Foundation Grant Application? • Land Donation? • Other Philanthropic Foundation support?

8. Project Benefits & Challenges • Limits on project debt ratios • Limits on fees that developers can defer • Future decreasing syndicator pricing • Increasing building supply costs • Local banks already committed to other community projects • NIFA & DED Support for project • MHEG Support • City Support

9. Funding Sources - After • $4520,200 – DED/NAHTF (infrastructure, DPA) • $1,700,000 - NIFA LIHTC Tax Credit Equity • $71,000106,700 – FHLB-AHP Funds • $54,000308,100 – City of O’Neill (infrastructure, building permit waivers) • $88,000 – City of O’Neill (land contribution) • $50,000 – Midwest Housing Development Fund Loan • $25,000 – Fannie Mae Grant (through MHEG) • $120,000 – Donations (general & subcontractors) • $133,000 - Permanent Financing • $78,000 - Deferred Developer Fee • $50,000 (est) – Donated Community Services and Programs • Up to $40,000 – Employer Assisted DPA ($5,000/home)

10. Lessons Learned • Develop relationships and partnerships early, to garner support for the project and deployment of alternative funding sources. • Have a Plan B ready, in case Plan A doesn’t work • Your partners are your greatest allies!!

11. Qualities and Tools That Lead To Success • FLEXIBILITY – Be open to new ideas and possibilities. • ENERGY – Focus on what you can do, maximize your energy, but don’t burn out. • ENTHUSIASM – Love what you do. • ANALYTICAL – Is this the right project, for the right people, at the right time, at the right cost? • EXCEDRIN Headache Medicine– Vitally important!! • IMAGINATION – Dream about what can be. • COMPASSION– Who are you helping, and how can you best impact. • DETERMINATION – Accept challenges. If it’s worth doing, don’t give up. • PARTNERING –Team up with others and share successes – no one person can think of everything. • COMMITMENT – Devote yourself to making a positive difference.

12. GREEN LIGHT TO GO!!! IMAGINATION • DETERMINATION • PARTNERING • EXCEDRIN • COMPASSION • FLEXIBILITY • COMMITMENT • ENERGY • ENTHUSIASM • ANALYTICAL